Dian Kuswandini, The Jakarta Post, Jakarta | Tue, 06/10/2008 10:20 AM | Headlines Qatar Telecom (QTel) and Singapore Technologies Telemedia (STT) Pte Ltd have confirmed that the divestment of an Indosat stake is still subject to a decision by the Supreme Court. QTel chairman Sheikh Abdullah Al-Thani said his company was aware of the legal process involving the shares in Indosat, Indonesia's second-largest telecommunications company, and would abide by the court's final ruling on the matter. "The Jakarta district court ruling concerning the stake we are acquiring in Indosat is being appealed, and whatever the final outcome of the appeal, we will of course abide by it," Al-Thani said here Monday. STT also said that the divestment was still subject to the Supreme Court's final decision. QTel head of business development Jeremy Sell said the company decided not to wait until a final decision from the court to buy the Indosat stake because it considered the offer too valuable to be missed. On Saturday, STT, a subsidiary of Singapore's Temasek Holdings, and Qatar Telecom, announced that their joint subsidiary, Asia Mobile Holdings (AMH), would sell its 40.8 percent stake in Indosat to QTel. For the transaction, QTel agreed to pay US$1.8 billion, or Rp 7,388 per share. A Jakarta district court in May upheld a decision by the Business Competition Supervisory Commission (KPPU), which found Temasek and subsidiaries guilty of anti-competitive behavior through a cross-ownership in two of the country's largest mobile telephone operators, Telkomsel and Indosat. The district court ordered the company either to relinquish at least 50 percent of ownership in Telkomsel or Indosat, or let go of all its shares in one of the companies. President director of the Indonesia Stock Exchange, Erry Firmansyah, said as quoted by Bloomberg that QTel must offer to buy all Indosat shares if it agreed to pay for the 40.8 percent Indosat stake. According to a local capital market regulation an investor that acquires a 25 percent or more stake in a publicly listed company must offer to buy the remaining shares from other shareholders. The state minister for state enterprises, Sofyan A. Djalil, said the government saw the Indosat divestment as a private sale between companies and welcomed the move. "In terms of our interest to draw investment from the Middle East, the Qatari investment is preferable. Qatari's presence hopefully will open investment from the Middle East," Sofyan said. The government, he said, was not interested in buying the shares as it would not create new jobs and have an added-value for the country. Nonetheless, he said, the government will hold on to its current 14.4 percent stake in Indosat as an investment since the tender price -- which is the highest stock price in the last three months -- is still seen as undervalued. QTel has promised to continue any agreements signed by the AMH with the government, including a clause requiring Indosat to have a local chairman. Business affairs legal expert Ningrum Natasya Sirait, also a lecturer at North Sumatra University, said QTel should have waited for the final Supreme Court verdict before deciding to acquire the stake in Indosat. Only when Indosat's status is clear, Ningrum said, can an acquisition take place.